Machiavellian said:
fleischr said:
Machiavellian said:
fleischr said:
Machiavellian said:
fleischr said:
Investors don't like it.
Existing XOne owners don't like it.
I think an Xbox 360 price cut is far, far more likely |
People that continue to bring the investor part into the mix really show they have no clue about the subject. These investors have always been there on MS board with no real pull to make any changes within the company because they have less than 1% interest. These investors are always the ones who are looking to cash and burn for greater dividend on their stocks and care little about long term plans, investment or even position of the company.
There was a push by one large group to get 1% interest in the company and failed, so their words continue to fall on deaf ears. Hell, there are investors on Sony board that requested them to spin off the PS division, how likely do you think thats going to happen. People need to stop throwing out the investor part because it has as much weight as a PS fan asking MS to spin off the Xbox division.
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By that you mean the board of directors? The board members represent not only their own interests, but those of institutional investors that make up a significant portion of company ownership. That makes up far more than 1% my friend. These are also top-brass in the company -- what they say, do, and think naturally becomes what the rest of the company will say, do, and think. Ballmer was one of the champions of the Xbox brand, but he's no longer CEO.
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Yes, I mean the board and yes, the amount of investor that can make any significant change at MS is less than 1% ownership of stocks which means those investors that want to spin off the Xbox division has no voting chance to make it happen. When have MS moved based on investors whims. As another person already stated, its the CEO that runs the company so unless there is some significant change in MS, nothing probably will change for the Xbox division.
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The people who own the company and lead the company, run the company. Who else do you think runs the company?
Activist investors and board members can make Microsoft sell the Xbox brand if they wanted to bad enough. The business case for it is actually compelling enough for a majority of investors and board of directors to do so. Not saying it will happen, but it's not as unlikely as you might think.
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Noticed that I say that the activist do not have anywhere near enough votes to get MS to do anything. You are going in circles. They make up less than 1% of the votes needed to make any change within MS. I really do not know how else to explain that point to you. Your business case was there for years and nothing has come of it then and nothing has changed now. There still is not enough pull from those investors to make MS change anything they are doing.
The only thing that will change is if the new CEO deem a change but the fact that he brought back Bill Gates into the fold, I highly doubt it. Do you believe the investors that want Sony to spin off the PS4 have any weight to make that happen. Do people just believe one over the other because thats what they want to happen or have you taken the time to research the situation and validity. I can tell you that I have researched both.
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Regardless of whether either of us is right about whether MS's board would want to spin off the company or not -- they're not going to do a price cut on Xbox One this early. Investors were actually quite happy that the Xbox One helped MS reach record revenues. With that, why change the price so soon? A price cut may make their sales more competitive with Sony, but they'd be doing so at a loss. (Since no Kinect-less Xbox One is available yet, and no official announcement of that being in the works).
Investor prospective: An Xbox One price cut would likely shrink revenue and sink profits.I think what has changed is that they don't have the patience to put up with that.
Gaming is now one of Sony's more profitable ventures. With the rest of the company still doing badly though, selling a piece of it might be the only way to keep Sony's head above water. Investors would rather buy a piece of a winning business, rather than one plagued with the issues other Sony divisions have.
